An Expected Increase in the Prices of Consumer Goods in the near Future

question 279

Multiple Choice

An expected increase in the prices of consumer goods in the near future will

• A) decrease (or shift left) in aggregate demand now.
• B) increase (or shift right) in aggregate demand now.
• C) decrease in the quantity of real output demanded (or movement up along AD).
• D) increase in the quantity of real output demanded (or movement down along AD).

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Definitions:

Rescinded

Revoked, canceled, or repealed, usually by official or formal action.

Public Trustee

A government official or department appointed to manage the estates, property, or financial affairs of individuals unable to do so themselves due to incapacity, absence, or death.

Doctrine of Mistake

Legal principles that allow a contract to be declared void if both parties were under a mutual misunderstanding about a key fact of the agreement.

Willful Blindness

The deliberate avoidance of acknowledging information or facts that one could easily know, often to escape liability.